Key facts
- US employers added more jobs than expected in May.
- Strong jobs data fuels bets on Federal Reserve rate hikes.
- Global stocks declined.
- Oil prices declined.
- The dollar index gained support from the Middle East conflict.
European shares edged up 0.2% on Friday, erasing earlier losses, as investors adopted a defensive stance ahead of the weekend due to heightened Middle East tensions and stalled U.S.-Iran peace talks. The AI-driven selloff, triggered by chipmaker Broadcom's underwhelming results, continued for a second day, with investors taking profits after a significant rally. South Korea's tech-heavy Kospi plunged 7%, as investors de-risked the semiconductor chain. Nasdaq and S&P 500 futures also fell. Cryptocurrencies extended their recent declines. Oil prices eased slightly, with Brent crude at $94.53 a barrel and U.S. crude at $92.61, both set for their first weekly gain in three weeks. The dollar was on track for a 0.5% weekly rise, supported by the Middle East conflict. The yen remained near 160 per dollar, with Japanese officials issuing warnings about the currency. Attention now turns to the U.S. nonfarm payrolls data, with forecasts suggesting a solid rise in employment. U.S. employers added far more jobs than expected in May, fueling bets that the Federal Reserve might raise rates later this year. Global stocks and oil prices declined, while the dollar index gained support from the Middle East conflict.